Save Your Job from Extinction - How to Make Procurement Relevant in Today's Times

Mammuthus primigenius

Saving your Job from Extinction

How to Make Procurement Relevant in

Today’s Times

Philip IdesonArt of Procurement

Zycus Horizon 2016

Zycus Horizon 2016: How to Make Procurement Relevant in Today’s Times

PHILIP IDESON

artofprocurement.com7

15-year career as a procurement practitioner & service provider

Experience across entire procurement value chain including Head of Procurement

Now Independent Procurement Consultant & Founder / Host of Art of Procurement



Is the Procurement profession (and therefore your job) really at risk of extinction?


the “intermediary” (that’s us)

has a product or service that meets the need

has a problem or a need

WHAT IS PROCUREMENT?


HISTORY HAS NOT BEEN KIND TO “INTERMEDIARIES” THAT DO NOT EVOLVE

https://www.flickr.com/photos/mortendk/439403397/


https://www.flickr.com/photos/thomashawk/5015948531


https://www.flickr.com/photos/fsse-info/3145552974/


WHAT WERE THEY THINKING – 5 YEARS PRE LIQUIDATION

“We are firmly committed to our global expansion plan”

“Borders has one of the most aggressive share repurchase programs I have ever seen” – Bill Ackman

“We are happy to announce that 2006 is off to a strong start. We will continue to focus on improved store profitability”

“Operating improvements and an ongoing investment in our core businesses, including store refurbishments are the key tenets of our plans for future growth”



FORTUNE FAVORS THE BRAVEZycus Horizon 2016: How to Make Procurement Relevant in Today’s Times


WHERE WILL PROCUREMENT BE IN X YEARS?

(insert number of years)


THREE STEPS TO “SAVE” PROCUREMENT

1. Redefine our value proposition (or the perception of it)

2. Embrace the coming disruption

3. Develop the capabilities to execute


1. REDEFINE OUR VALUE PROPOSITION

“all procurement cares about is cost savings”- everyone outside procurement




“every $1 saved equals $X in revenue- how we justify ourselves




Let’s think differently:

margin expansionbrand value

revenue generationorganizational agility

governance & compliance




“make an impact that matters”- Lance Younger, Deloitte (Former CPO, Goldman Sachs)




“solve business problems”- Mark Perera, Founder Old St Labs & Procurement Leaders




Cost Savings

Value Contribution

Time



2. EMBRACE THE COMING DISRUPTIONSZycus Horizon 2016: How to Make Procurement Relevant in Today’s Times


2. EMBRACE THE COMING DISRUPTIONS

“business models are not meant to be static”

“one of my fears is being this big, slow bureaucratic company that is happy with its success. that will wind up being your death in the end”

- Mark Parker, CEO, Nike



Redesign the procurement delivery model


self sourcinghybrid delivery modelsvariable cost structure

focus on value




…and be there for our business partners as they explore what

these disruptions mean for them


3. DEVELOP THE CAPABILITIES TO EXECUTE

Roster:

1. Visionary & Captain2. Architect3. Facilitator4. Delivery Manager5. Subject Matter Expert

• Category• Risk• Sustainability• Intelligence• Data Scientist



TAKEAWAYS

Is disruptive change coming to procurement?

Do we risk the future of our profession if we stand still?

Find out the model that will work for your company?company objectives & culture are key



THREE STEPS TO “SAVE” PROCUREMENT

1. Redefine our value proposition (or the perception of it)

2. Embrace the coming disruption

3. Develop the capabilities to execute


Start today!

Philip [email protected]

Business

Save Your Job from Extinction - How to Make Procurement Relevant in Today's Times